HUD Approves Loan Guarantee to City for Redevelopment Project

In a recent press release, the U.S. Department of Housing and Urban Development (HUD) announced its approval of an $8.8 million Section 108 loan guarantee to the City of Durham for the Southside/Rolling Hills Neighborhood Redevelopment Project, which is located within a HUD-approved Neighborhood Revitalization Strategy Area.  The City Council approved funding for the project back in September 2011.  The project will consist of three phases of rental development and three phases of home ownership development.

HUD's Section 108 Loan Guarantee Program is part of the Community Development Block Grant (CDBG) program.  The Section 108 loan guarantee program provides communities with a source of financing for economic development, housing rehabilitation, public facilities, and large-scale physical development projects.  It can be a useful tool in attracting private developers to distressed areas.  Under this program, there is risk to the local government, as it must pledge its current and future CDBG allocations as security for the loan. 

Do you have an economic development project worthy of pitching to a local government for funding under the Section 108 loan guarantee program?  

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